Asia-Pacific markets set for recovery on revived Fed cut hopes after bruising tech losses last week

Asia-Pacific markets are set to start the week higher after the New York Federal Reserve President signaled that a third rate cut could happen this year.

On Friday, New York Federal Reserve President John Williams suggested the Fed could lower its key interest rate from here as labor market weakness poses a bigger economic threat than higher inflation.

The Fed has just one meeting left for 2025, which will take place on Dec. 9-10 stateside. The target rate is currently at 3.75% to 4.00%.

Fed funds futures are currently pricing in around a 70% chance of a quarter percentage point cut, according to the CME FedWatch tool.

Australia’s S&P/ASX 200 started the day 1.08% up, rebounding from a 1.59% loss on Friday. On Monday, shares of logistics group Qube